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TMI Blog2015 (6) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 143(3)/148 of the Act have become vitiated entailing in nullifying proceedings and, accordingly, the orders of assessment under Section 143(3)/148 are quashed - Decided in favour of assessee. - ITA Nos.1068/Del/2008 to 1073/Del/2008 - - - Dated:- 10-6-2015 - Shri G.C. Gupta and Shri Inturi Rama Rao,JJ. For the Petitioner : Shri Kaanan Kapur and Shri Bhushan Kapur, Advocates. For the Respondent : Shri T.Vasanthan, Senior DR. ORDER PER G.C. GUPTA, VP : This bunch of six appeals preferred by the assessee for the assessment years 1999-2000 to 2004-05 is directed against the order of learned CIT(A)-XXV, New Delhi. Since identical issue is involved in all these appeals, the same are being disposed of with this consolidated order. 2. The identical grounds of appeal No.1 to 4 of the assessee in all these appeals are as under:- 1. That the learned CIT(A) has erred in confirming the action of learned Assessing Officer, that completing assessment u/s 143(3)/148 of the Income Tax Act, 1961 was in order. 2. That the learned CIT(A) has erred in law and on facts in confirming A.O. s action of issuing the notice u/s 148 which was without jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a request has been made in the concluding part of the letter to supply the reasons for reopening the cases under Section 148 of the Act. He submitted that in view of the failure of the Assessing Officer in supplying the reasons recorded while reopening the assessments in this case by issue of notice under Section 148, the entire reassessment proceedings were bad in law and liable to be quashed. The learned counsel for the assessee submitted that an affidavit regarding non-receipt of reasons for reopening of assessment under Section 148 was filed. He referred to paragraph 4.6 of the impugned order passed by the learned CIT(A) wherein he has recorded that it appears from the records that the request for providing reasons for issuing the notice under Section 148 was made by the appellant. The CIT(A) further recorded that it is also apparent from the assessment records that there was no formal communication of the reasons for issuing notice under Section 148 by the Assessing Officer to the assessee. However, the CIT(A) decided the issue against the assessee on the plea that it was not correct to say that the assessee remained ignorant about the reasons for the issue of notice under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignorant about the reasons for the issue of notice under Section 148 of the Act. The CIT(A) has recorded certain facts, i.e., that the assessee has not filed any return for A.Y. 1998-99 although its total income was in excess of maximum amount not chargeable to income tax and that, as per provisions of Section 139(1), it was required to furnish the return of income in the prescribed form etc. and that, under the provisions of Section 147 read with Explanation 2(a) thereto, where no return of income is furnished, although the total income exceeds the maximum amount not chargeable to income tax, the case is deemed to be one where income chargeable to tax has escaped assessment and the Assessing Officer is required to assess such income under Section 147 of the Act. The learned DR referred to paragraph 9.1 of the learned CIT(A) s order wherein it was recorded that the observation of the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. (supra) does not suggest that non-communication of the reasons would result in the assessment proceedings and the assessment order becoming void or bad in law where the return of income under Section 139(1) itself was not filed. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the Revenue. In these facts of the case, the only issue which requires adjudication is that whether the noncommunication of the reasons recorded for issuing notice under Section 148 of the Act, inspite of a specific request made by the assessee for providing reasons for issuing the notice under Section 148, renders the whole reassessment proceedings vitiated and void in law. The Tribunal, vide its order dated 05.01.2009, has set aside the issue of validity of notice under Section 148 for the relevant assessment years and has restored the same to the file of the Assessing Officer for a fresh decision in the light of the decision of Hon ble Apex Court rendered in the case of GKN Driveshafts (India) Ltd. (supra). We find that the Hon'ble Supreme Court, in its judgment dated 25.11.2002 in GKN Driveshafts (India) Ltd. (supra), held that when a notice under Section 148 of the Act is issued, the proper course of action for the notice is to file return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish the reasons within a reasonable time. On receipt of reasons, the notice is entitled to file objections to issuance of notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated and void. The decision of Hon'ble Delhi High Court in Haryana Acrylic Manufacturing Company (supra) is binding on the Tribunal, wherein it is held that the requirement of recording the reasons and communicating the same to the assessee, enabling the assessee to file objections and the requirement of passing a speaking order, are all designed to ensure that the Assessing Officer does not reopen the assessments which have been finalized on his mere whim and fancy, and that he does so only on the basis of lawful reasons and, a deviation from these directions would entail the nullifying of the proceedings and, the order of assessment in this case was accordingly quashed. Respectfully following the decision of Hon'ble Jurisdictional High Court in Haryana Acrylic Manufacturing Company (supra), we decide the issue in favour of the assessee and hold that in view of the fact that the assessee was not given the copy of the reasons for issuing notice under Section 148 of the Act by the Assessing Officer inspite of a specific written request of the assessee for providing the same, the whole reassessment proceedings and the resultant order of assessment passed under Section 143(3)/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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